The US dollar fell today after the report showed that the US economy expanded with slower pace than was predicted by specialists and Federal Reserve Ben S. Bernanke hinted at possibility of additional stimulus. According to the preliminary report, US gross domestic product grew 1.0 percent in the second quarter of 2011, following the increase by 0.4 percent in the first quarter. The advance estimate promised growth by 1.3 percent, while market participants … “Dollar Drops After Bernanke Speech & GDP Report”
Month: August 2011
GBP/USD Breaks Lower, EUR/USD Hesitates
GBPUSD: Breaks the 1.6255/60 levels, Sets Up For The 1.6110 Level. GBPUSD: Having followed through lower during Friday trading session today and violated the 1.6255/60 levels, its Aug 15 & 25’2011 lows, risk has turned to the 1.6110 level, its Aug 11’2011 low. This is coming on the back of a loss of upside momentum … “GBP/USD Breaks Lower, EUR/USD Hesitates”
Pound Goes Down as UK Economy Slows
The Great Britain pound weakened against the Japanese yen and slowed its advance versus the US dollar after the report showed the UK economy grew with slower pace in the second quarter. The revised figure for growth of UK gross domestic product in the second quarter of 2011 was 0.2 percent, the same as in the preliminary estimate. It indicates slower expansion, compared to 0.5 percent growth in the first quarter. The report also mentioned that several … “Pound Goes Down as UK Economy Slows”
Aussie Recovers on Stevens’ Speech
The Australian dollar strengthened today as the statement of nation’s central bank Governor Glenn Stevens spurred the speculation that the Reserve Bank of Australia won’t cut interest rates. Stevens spoke today to House of Representatives Standing Committee on Economics, telling about the uncertainty and problems of the global economy. Despite these challenges, the Governor was rather optimistic: But at this point in time, our terms of trade are at a record high, while our unemployment … “Aussie Recovers on Stevens’ Speech”
Will Bernanke Announce QE3? Will Dollar Decline?
The US dollar continued to rise today ahead of tomorrow’s speech of Federal Reserve Chairman Ben S. Bernanke, who is expected to announce a new round of quantitative easing. Some economists believe such expectations are futile. Some market analysts argue that the North American economy doesn’t require additional stimulus as consumer prices continue to rise and the economic growth continues to accelerate, while deflation pressure wanes. Today’s report … “Will Bernanke Announce QE3? Will Dollar Decline?”
Euro Falls for Second Day vs. Dollar
The euro fell against the US dollar for the second day and erased gains versus the Swiss franc today as investors are less willing to buy the currency amid signs of problems in Europe and concerns of global economic slowdown. The decline of consumer confidence in Germany had its negative impact on the shared European currency. GfK stated that German consumer confidence fell from 5.3 to 5.2 this month and wrote in the report: Economic expectations virtually … “Euro Falls for Second Day vs. Dollar”
Australia’s Dollar Weakens on Germany’s Consumer Confidence
The Australian dollar fell today against most major currencies, before rebounding, as the report showed consumer confidence in Germany declined this month, reducing appeal of higher-yielding assets. The drop of German confidence wasn’t very big as the GfK indicator retreated just to 5.2 in August from 5.3 in the month before. The report explained: Despite the current crisis on the financial markets, Germansâ willingness to buy is surprisingly robust and increased further in August from … “Australia’s Dollar Weakens on Germany’s Consumer Confidence”
GBP Falls vs. EUR with Consumer Confidence & Retail Sales
The Great Britain pound fell today against the euro and fluctuated versus the dollar as the signs that the economy of the UK is weakening made the sterling less attractive to Forex traders. Nationwide Building Society reported consumer confidence fell from 51 to 49 in July and said: Any substantial improvement in confidence is unlikely during the remainder of 2011. The Confederation of British Industry Distributive Trades Survey showed the balance of retail at -14 percent in August, … “GBP Falls vs. EUR with Consumer Confidence & Retail Sales”
Ben ponders another helicopter drop
Fed Chairman Ben Bernanke heads to Jackson Hole later this week for the Fed’s annual symposium against the backdrop of intensifying speculation that another round of quantitative easing may be required to avoid the US economy plunging back into recession. The commitment made at the last FOMC meeting to keep the funds rate on hold … “Ben ponders another helicopter drop”
Loonie Feels Better with Good Signs from US
The Canadian dollar gained today versus most its major peers as the signs of stronger US economic growth and anticipation of new round of quantitative easing in the US improved prospects for the Canadian currency. Canada and its currency depend on the economy of the United States as the US is the major trading partner of Canada. Therefore, better prospects of the economic growth of Canada’s neighbor help the Canadian currency. US durable goods orders rose 4.0 percent in July, … “Loonie Feels Better with Good Signs from US”